For the Quarter Ending March 2025
North America
• The Polyolefin Elastomer (POE) Price Index in North America declined by 1.77% in Q1 2025 compared to Q4 2024.
• Polyolefin Elastomer (POE) Spot Price remained stable through most of the quarter but was impacted by ongoing freight delays and port congestion that constrained production efficiency.
• The POE Price Index experienced downward pressure from proposed maritime fee hikes and persistent logistics bottlenecks, which tempered supplier confidence.
• Polyolefin Elastomer (POE) Demand Outlook remained moderate, with support from the automotive and construction sectors, although consumer sentiment and high interest rates restrained aggressive purchasing.
• The residential construction segment provided support, but rising material costs—driven by tariffs—hindered broader sector growth.
• The packaging and consumer goods industries faced logistics-related input cost pressures, which slowed POE procurement activity.
• Polyolefin Elastomer (POE) Production Cost Trend remained stable due to steady feedstock availability, especially for ethylene, though future logistics fees may impact costs.
Why did the price of Polyolefin Elastomer (POE) change in April 2025 in the US?
• The POE Price Index in April showed slight softening, as demand failed to accelerate and logistics costs continued to pressure buyer sentiment.
• Polyolefin Elastomer (POE) Price Forecast for Q2 2025 suggests limited upside unless downstream demand improves substantially and logistics challenges are resolved.
APAC
• The Polyolefin Elastomer (POE) Price Index in South Korea declined marginally by 0.81% in Q1 2025.
• Polyolefin Elastomer (POE) Spot Price held relatively firm despite a power outage at the Daesan Petrochemical Complex and minor logistical adjustments.
• Polyolefin Elastomer (POE) Production Cost Trend remained stable, as ethylene feedstock availability was consistent and power-related disruptions were short-lived.
• POE demand from automotive and construction sectors was subdued, reflecting ongoing challenges in both segments across South Korea and broader APAC.
• Polyolefin Elastomer (POE) Demand Outlook remained weak, with only modest recovery in automotive sales and stagnation in construction activity due to high costs and declining investment.
• The easing of global port congestion and new shipping alliances stabilized regional supply flows but did not translate into improved demand.
Why did the price of Polyolefin Elastomer (POE)change in April 2025 in Asia?
• In April 2025 increase in the POE Price Index across Asia was driven by synchronized improvements in demand, regional supply tightening due to maintenance events, and feedstock cost escalation. These factors collectively led to the 0.7% rise in prices.
• Polyolefin Elastomer (POE) Price Forecast for Q2 2025 anticipates continued caution, with price stability likely unless China’s demand growth becomes more regionally influential.
Europe
• The Polyolefin Elastomer (POE) Price Index in Germany fell by 1.35% in Q1 2025 from the previous quarter.
• Polyolefin Elastomer (POE) Spot Price softened mildly, reflecting reduced consumption in the automotive and construction sectors.
• Automotive demand showed some rebound in March but was not strong enough to reverse broader price pressure during the quarter.
• The construction industry remained sluggish across both residential and commercial sectors, with only civil engineering offering signs of potential rebound.
• Polyolefin Elastomer (POE) Demand Outlook in Europe remained restrained, as procurement was cautious despite European Central Bank interest rate cuts aimed at stimulating spending.
• Logistical bottlenecks at key European ports such as Hamburg and Rotterdam contributed to delayed shipments and higher yard costs, influencing pricing strategies.
• Polyolefin Elastomer (POE) Production Cost Trend decreased slightly, as ethylene prices softened due to lower naphtha values, though cracker capacity cuts limited output flexibility.
• The electrical and packaging sectors offered some resilience, but inflation and market uncertainty limited overall consumption growth.
Why did the price of Polyolefin Elastomer (POE) change in April 2025 in Europe?
• The April 2025 POE price increased marginally by 0.6% in Europe was driven by stabilized logistics, and firming feedstock prices—all culminating in upward price movement.
• Polyolefin Elastomer (POE) Price Forecast into Q2 points to relative price stability with continued downside risk if end-user demand fails to strengthen.
For the Quarter Ending December 2024
North America
In the fourth quarter of 2024, Polyolefin Elastomer (POE) prices in the US experienced a 4.01% decrease compared to the previous quarter, reflecting a mix of stable supply conditions and moderate demand fluctuations. The decline can largely be attributed to lower demand from the downstream sectors, including construction and packaging, while the automotive sector remained relatively stable. Despite these challenges, suppliers managed to maintain steady production levels and ensure the availability of adequate inventories, preventing more significant price changes.
Throughout the quarter, the automotive sector continued to support POE demand, with sales increasing year-over-year in both November and December. However, the construction sector showed signs of sluggishness, partly due to elevated mortgage rates and a decline in housing starts. Additionally, port congestion and logistical challenges persisted, leading to extended delivery times but not causing major disruptions in the supply chain.
Overall, this price decline reflects the balancing act between adequate inventories, cautious buying behavior, and mixed demand across key sectors, particularly the slowdown in construction activity and the ongoing challenges in the global supply chain. Looking forward, prices are expected to stabilize, supported by steady automotive demand and strategic supplier actions.
APAC
Over the last quarter, the Chinese Polyolefin Elastomer (POE) market experienced a modest price decrease of 4.12%. This decline was largely driven by stable supply conditions and balanced demand dynamics across key sectors. Manufacturing activity showed a positive uptick, supported by a growing automotive sector, which saw steady sales growth. The packaging and consumer goods industries also sustained consistent demand. Despite this, the construction sector showed signs of weakness, contributing to a cautious market sentiment. Construction activities were subdued, with only a slight improvement in December, while the automotive sector continued to perform well, particularly with an 11% increase in passenger vehicle sales in December. In the supply chain, smooth logistical operations ensured a stable flow of POE, with no major disruptions reported. Import data indicated consistent sourcing from key exporters like South Korea, Thailand, and Singapore, which contributed to balanced inventory levels. However, the subdued demand in construction and softening global export orders tempered overall market growth. While domestic demand, particularly from automotive and consumer goods sectors, remained firm, the outlook for POE prices reflects the ongoing uncertainty and the need for continued policy support to boost market recovery. The overall market remains steady but cautious, with a slight contraction in pricing for the quarter.
Europe
In Q4 2024, the price of Polyolefin Octene-based Elastomer (POE) in the German market witnessed a 4.82% decrease, settling at 2690 USD/MT FD-Hamburg by early January 2025. This decline was largely influenced by subdued demand dynamics and easing raw material costs, notably Ethylene, which saw a cumulative 10.1% reduction in November. Adequate inventories and improved supply conditions supported market stability, even as buyers maintained cautious procurement strategies. Manufacturing conditions showed improvement, with normalized production rates and reduced port congestion aiding supply chain resilience. However, weak economic sentiment across Europe and political uncertainties dampened the overall market environment. Inventory management strategies by suppliers and moderated input costs contributed to stable supply levels, preventing sharper price fluctuations. The automotive sector displayed moderate activity, with passenger car registrations experiencing monthly fluctuations but remaining below previous year levels. Meanwhile, the construction sector remained deeply affected by political turmoil and reduced investment confidence, marking persistent declines in activity and new orders. Despite these challenges, the European POE market maintained a balanced supply-demand scenario. However, weak buyer sentiment and a challenging macroeconomic backdrop led to the observed price correction during the quarter, setting a cautious tone for the upcoming sessions.
For the Quarter Ending September 2024
North America
In Q3 2024, the North American Polyolefin Elastomer (POE) market experienced a significant price drop, with the USA seeing the most pronounced changes. The overall trend was characterized by a consistent decline, despite positive performance in key sectors like the Automobile and Construction industries.
The primary driver behind the falling POE prices was the decline in crude oil, which caused olefin monomer prices to drop—directly impacting POE pricing. The market saw a notable -13.82% decrease compared to the same quarter last year and a further -2.71% drop from the previous quarter, reflecting a sustained downward trend.
Oversupply, reduced demand, and ongoing market uncertainties contributed to the bearish sentiment throughout the quarter. The quarter-ending price for Butene-Based POE in the USA was USD 2560/MT FOB New Orleans, underscoring the persistent decline in prices. This negative pricing environment was largely shaped by weakening feedstock costs and muted downstream demand, leading to steady price reductions across the region.
APAC
In Q3 2024, the Polyolefin Elastomer (POE) market in the APAC region experienced a price decline, primarily due to several influencing factors. A key contributor to this decrease was the oversupply relative to demand, which created a downward pricing trend. Additionally, weakened demand from critical sectors such as automotive and construction further impacted pricing. The ongoing drop in crude oil prices significantly affected olefin monomer prices, with Ethylene specifically showing a 5.60% decline from the previous quarter. The market sentiment was predominantly negative, evidenced by a 5.55% decrease compared to the same quarter last year, along with a 1.35% decline from the previous quarter in 2024, reinforcing the downward trajectory. While the automobile sector in the Asian market saw a notable uptick, the construction sector underperformed, particularly in major economies like China, which adversely affected POE demand. By the end of the quarter, the price of Butene-Based POE in Japan settled at USD 2750/MT CFR Tokyo, reflecting the prevailing bearish sentiment in the pricing landscape.
Europe
In Q3 2024, the Polyolefin Elastomer (POE) market in Europe experienced a significant decline in prices, particularly in Germany, which saw the most pronounced changes. The quarter was marked by a challenging market landscape driven by various factors, including reduced demand in crucial sectors like automotive, electronics, healthcare and construction, which played a vital role in pushing prices lower. Additionally, volatile ethylene feedstock costs and lackluster market activity further exacerbated the downward price trend. Recent market updates indicate that producers have reduced the prices of olefin monomers, which has substantially impacted the pricing of POE from end suppliers. However the underperformance in the European economy has majorly affected the price of the POE towards lower side. Compared to the same quarter last year, the prices reflected a notable decrease of -10.76%, underscoring a sustained negative pricing trend. Furthermore, a quarter-on-quarter change of -1.30% highlighted the ongoing decline. By the end of the quarter, the price for Polyolefin Elastomer Butene-Based in Germany reached USD 2560/MT FD Hamburg, illustrating the prevailing bearish sentiment in the market's pricing dynamics.
For the Quarter Ending June 2024
North America
The second quarter of 2024 has been marked by a distinct downward trend in Polyolefin Elastomer (POE) pricing across the North America region. The significant factors influencing market prices this quarter include persistent destocking activities by suppliers, an oversupply relative to demand, and constrained capacity utilization due to logistical disruptions and cost management measures. In contrast the Automobile sector witnessed positivity in the numbers in the respective period which supported the POE price to some extent.
In the USA, which has experienced the most pronounced price changes, the overall market sentiment has been negative. The quarter witnessed a -16.7% decrease in prices compared to the same period last year, reflecting an ongoing supply glut and reduced purchasing activity. From the previous quarter in 2024, there was a -2% decline, suggesting a sustained but moderate reduction in price levels.
The latest quarter-ending price for Butene-Based Polyolefin Elastomer FOB New Orleans in the USA stands at USD 2663/MT. This consistent decrease highlights a negative pricing environment, driven primarily by an imbalance between supply and demand and strategic inventory management by suppliers. Despite growth in certain downstream sectors, the pricing dynamics for POE have not seen significant positive adjustments, leading to a sustained bearish outlook for the period.
APAC
In Q2 2024, the Polyolefin Elastomer (POE) market in the Asia-Pacific (APAC) region faced a notable decreasing trend in prices. The quarter was characterized by various factors contributing to this decline, with balanced supply and demand dynamics playing a significant role. Production levels were consistently stable, ensuring inventory adequacy, while demand from major downstream sectors like construction and automotive remained modest. Despite positive economic indicators in some territories, global economic uncertainties and fluctuating feedstock costs, especially for ethylene, further pressured market prices. Specific to the Japanese market, which experienced the most significant price fluctuations, POE prices demonstrated a marked decline. The overall trend was predominantly downward, influenced by seasonality and weakened industrial activities. The correlation in price changes reflected a concerted response to diminished demand coupled with an ample supply. Compared to the same quarter last year, prices fell by 6.2%, underscoring a negative pricing environment. However, relative stability was observed from the previous quarter of 2024, with no substantial percentage change, indicating a plateauing effect following earlier declines. The latest quarter-ending price for POE Octene Based in Japan settled at USD 3153/MT CFR Tokyo, reflecting a persistent negative sentiment in the pricing environment.
Europe
The second quarter of 2024 has seen a consistent downward trend in Polyolefin Elastomer (POE) prices across the European region. This decline is primarily driven by a combination of factors, including supply chain disruptions, subdued demand from key sectors, and an oversupply of raw materials. Manufacturers and suppliers have been actively engaging in destocking activities, which has further exacerbated the price decline. The construction sectors, traditionally significant consumers of POE, have shown tepid demand while this bearishness is balanced to some extent by the improvement in the Automobile sales, contributing to the overall weak market sentiment. In Germany, the market has experienced the most pronounced price changes within this context. The overall trend for POE in Germany has been markedly negative, influenced by the declining performance of the construction sector and only moderate activity in the automotive industry. The correlation between reduced inventory accumulation and declining prices is evident, reflecting cautious market behavior. From the same quarter last year, POE prices in Germany have fallen by 16.4%, underscoring a significant annual decrease. Compared to the previous quarter in 2024, there has been no percentage change, indicating a stable yet weak market environment. The latest quarter-ending price for Polyolefin Elastomer Butene Based in Germany stands at USD 2865/MT FD Hamburg, encapsulating the negative pricing environment of Q2 2024.
Frequently Asked Questions (FAQs):
1. What is the current Polyolefin Elastomer (POE) Spot Price in Q1 2025?
The Polyolefin Elastomer (POE) Spot Price declined slightly across regions: -1.77% in North America, -0.81% in APAC, and -1.35% in Europe, reflecting soft demand and logistical constraints.
2. What is the Polyolefin Elastomer (POE) Demand Outlook for Q2 2025?
The Polyolefin Elastomer (POE) Demand Outlook remains cautious globally, with moderate expectations for improvement in automotive and civil infrastructure sectors.
3. Who are the top Polyolefin Elastomer (POE) producers in the United States, Europe, and APAC?
Major producers include ExxonMobil and Dow in the United States, Borealis and SABIC in Europe, and LG Chem and SK Global Chemical in APAC.
4. What is the Polyolefin Elastomer (POE) Price Forecast for Q2 2025?
The Polyolefin Elastomer (POE) Price Forecast indicates stable-to-soft pricing in Q2 2025, with external risks like logistics costs and interest rates continuing to influence market direction.
